This invention relates generally to methods and systems for facilitating management of new bond issues. In particular, the present invention relates to a methods and systems of making new bond or other fixed income instruments available through pre-auction and auction processes.
The bond markets in a country such as the United States may be the most sophisticated and regulated in the world. Nonetheless, the current system for issuing new bonds can present at least an appearance of impropriety. A conflict of interest can be perceived when an issuing manager is under pressure to sell the bond issue and favorable research is published by an entity allied with an issuing manager.
Similarly, a perceived conflict of interest can arise when a potential manager for a bond issue offers advice to a company or government entity concerning market timing. Favorable timing for an investment bank that will manage a bond issue may or may not correspond with good market timing.
What is needed therefore are methods and mechanisms to provide for issuance of bonds and other fixed income instruments in a manner that alleviates and actual or perceived conflicts of interest.